Furnace Replacement Cost
Upfront Pricing and Professional Furnace Installation
Replacing your furnace is a significant investment that impacts your home’s comfort and energy efficiency for years to come. At Watkins Heating & Cooling, we know how daunting this process can feel, and we’re here to simplify it. With transparent pricing, professional installation, and guidance tailored to your needs, we make your furnace replacement as smooth as possible.
On this page, we’ll provide you with tools to estimate your total cost, explore the factors that affect furnace replacement cost, and highlight why Watkins is the right choice for your new furnace installation. Whether you’re considering a high-efficiency furnace or a budget-friendly models, our only job is to help you find the best fit for your home AND budget. We have 30+ years of professional furnace installation under our belt, and we're here for any furnace cost questions you may have.
What Does Furnace Replacement Typically Cost?
The cost to replace a furnace depends on several factors, including the size of your home, type of furnace, installation complexity, and whether additional upgrades are needed. For homeowners in the Miami Valley, the typical furnace replacement cost ranges from $2,900 to $8,700 with an average cost of approximately $5,800. Our honest pricing covers both the furnace and its installation, so there are no hidden surprises.
This wide price range reflects the variety of options available, from entry-level natural gas furnaces to premium electric furnaces. While you have higher upfront costs with a high-efficiency furnace, it offers significant savings on your energy bills over time.
Furnace Cost Calculator
Our Furnace Cost Calculator is designed to help you estimate the total cost of your new heating system. It breaks down pricing into four key components: home size, furnace efficiency & staging, venting, and installation complexity. This cost estimate applies to both natural gas and propane furnaces.
With this tool, you can adjust sliders to see how factors like furnace size and efficiency affect your overall cost. This can give you a better idea of what to expect before scheduling a consultation. Unlike other contractors, Watkins Heating & Cooling provides transparent, itemized pricing so you’ll never be surprised by hidden fees.
If you're looking for pricing on specific Trane furnace models, check out our Trane furnaces page here.
When you're ready for the next step, schedule a free consultation with a Comfort Advisor below. We’ll assess your home, explain your options, and give you a firm estimate - all in an easy, no-pressure process.
Watkins Furnace Pricing Guide
We offer furnaces for every budget, from entry level models to advanced systems with cutting-edge technology. Price ranges vary based on unit size and efficiency.
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Base Models: $2,900–$4,000
These 80% AFUE gas furnaces provide reliable heating with a mix of single-stage and two-stage options, along with standard or multi-speed blower motors. These entry-level models include the Trane S8X1 and are best for smaller homes with basic heating needs.
- Mid-Range Models: $4,000–$6,000
Mid-range gas furnaces combine high efficiency burners (95% AFUE) with basic comfort features. They include single or two-stage, and x13 blower motors. Mid-range models like the Trane S9X2 are ideal for boosting reliablility and efficiency without premium pricing.
- Premium Models: $6,000–$8,700
These high-efficiency 97% AFUE gas furnaces include two-stage fully modulating heating and variable-speed blowers. Premium models like the Trane XC95 offer the best energy savings and upgrade your comfort with precise temperature control and humidity management.
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Factors That Affect Furnace Replacement Cost
When trying to understand how much a new furnace costs, there are several factors that come into play:
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Furnace Efficiency and AFUE Ratings: Annual Fuel Utilization Efficiency (AFUE) measures how well a furnace converts fuel into heat. High-efficiency furnaces with 95%+ AFUE ratings cost more upfront, but save money with energy efficiency and provide better performance.
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Fuel Type: Oil furnaces are the most expensive option, costing more to manufacture and install than natural gas, and propane furnaces. In addition, high fuel prices and maintenance mean oil is rarely used outside of rural areas that don't have access to natural gas. A propane furnace is simply a natural gas furnace plus a field-installed propane kit that adds around $200.
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Home Size and Furnace Capacity: Your home’s square footage and insulation determines the required furnace capacity, measured in British Thermal Units (BTUs). Larger homes need furnaces with higher BTU ratings, which increases both equipment and installation costs.
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Furnace Brand: When you look at similar furnace models across different brands, the price gap is fairly small, typically around 10%. Top-tier manufacturers like Trane, Carrier, and Daikin offer many options, from budget-friendly to premium, so you don't have to sacrifice quality to save money.
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Extra Supplies: Some homes just need the old furnace swapped out for a new one. Others need new vent piping or major ductwork correction. Extra materials add around 10% to the total cost.
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Installation Complexity: Factors like complex ductwork and confined attics or crawl spaces can make installation more complex, requiring more labor hours and a top-notch installation crew.
Why Do Furnaces Cost So Much?
There are a few key influences that have caused the cost of a new furnace installation to rise.
Economic factors play a significant role. Inflation affects the entire supply chain, from raw materials like metals and refrigerants to manufacturing and installation costs. These price increases ripple through the industry, ultimately affecting the final cost to homeowners.
A skilled labor shortage in the HVAC industry is another big factor. With less people entering the trades, wages for qualified technicians have increased, directly impacting installation costs. This shortage also highlights the importance of choosing experienced professionals for your furnace installation.
Government regulations and environmental standards have the biggest impact on the cost of a new furnace. Requirements for higher efficiency ratings, updated testing methods, and advanced blower motors all contribute to increased production and installation costs. While these changes may benefit the environment and long-term energy consumption, they do impact upfront costs.
Technology advancements have greatly improved performance and efficiency. Modern units offer features like variable-speed operation, smart home integration, and improved humidity control. But these upgrades in comfort and energy savings also lead to higher initial costs. Many of these new features are optional, and we're happy to help you decide what makes sense for your home.
When Is It Time to Replace Your Furnace?
Deciding when to replace your furnace can be challenging because even most 20 year old furnaces are still fixable. However, constant repairs and rising utility bills may eventually outweigh the value of holding onto your current unit. If your system has passed the 10-year mark, it’s often wise to keep an eye on performance and repair costs. Experienced HVAC contractors can help you figure out if investing in another round of fixes is worth it or if installing a new furnace makes more financial sense in the long run.
While a properly maintained furnace can operate for 15 to 20 years—and sometimes longer—major problems often surface around the decade mark. Core components, such as the heat exchanger, may fail and bring hefty repair bills. Frequent breakdowns not only cause inconvenience, but they can also drive up overall expenses. Upgrading to a new model typically delivers better efficiency, more reliable heating, and fewer unexpected repairs. Weighing all of these factors carefully will help you decide when it’s time for a replacement.
Making Your Furnace Replacement More Affordable
Financing Options
We offer financing plans to help spread out the cost of your new furnace. Whether you want a high-efficiency furnace or budget-friendly model, our plans make it easier to manage the cost.
Special Promotions
Check out our exclusive promotions before getting a new furnace. Take advantage of special discounts on the top furnaces like the Trane S9V2 for impressive savings.
Rebates & Tax Credits
Our highest energy-efficient furnaces may qualify for federal tax credits, saving you hundreds or even thousands of dollars. Our team will help you maximize these savings.
Why Have Watkins Install Your New Furnace?
At Watkins Heating & Cooling, we’ve built our reputation on the most honest and professional furnace installation. Here's what sets us apart:
- Experienced Technicians: Our team has over 30 years of expertise in furnace installation. We employ NATE-certified specialists and maintain rigorous in-house training programs to ensure you receive the best install every time.
- No Subcontractors: Many HVAC companies use subs for their installs, transferring risk to the subcontractors' insurance. Because the sub is paid by the job, their only focus is speed. We believe that only long-term employees can deliver consistent high quality service.
- No Sales Gimmicks:We believe in straightforward pricing and honest recommendations—no pushy upsells or hidden charges. You’ll receive clear quotes and tailored solutions for your home’s heating needs.
- Quality Installations: Our technicians earn bonuses for the quality of their HVAC installation and not for the speed of the job. So they take the time to size, install, and test each system for maximum efficiency and lifespan.
A Watkins Customer's Furnace Replacement Story
The Problem: A family in the Beavercreek, Ohio were struggling with an aging HVAC system that wasn’t keeping up with their needs. Their old Maytag air handler and heat pump had become inefficient and unreliable, leading to high energy bills and frequent repairs. They were also looking to switch to a more cozy, reliable gas furnace and heat pump combination to handle Ohio’s unpredictable weather. Their outdated system lacked modern air quality features, which left their home feeling dry and chilly in the winter.
The Solution:
Our team proposed a complete system upgrade with natural gas backup instead of resistance electric. The homeowners selected a high-efficiency Trane S9V2 gas furnace paired with the XV18 heat pump. This state-of-the-art combo delivers consistent comfort, even during extreme temperature swings.
We began the process by installing the furnace and running a new 1-inch gas line, with connections for a future water heater and gas stove. To ensure the family wasn’t left without heat during the installation, we made sure the heat pump stayed operational until the gas line passed inspection. Once approved, we completed the installation, including new 2-inch PVC vents and enlarged return air ducts for more airflow.
To enhance indoor air quality, the system also included a Trane Envirowise bypass humidifier, Aprilaire MERV 13 air filter, and an APCO UV air purifier to combat allergens and bacteria. A Trane 850 smart thermostat ensured precise temperature control and energy savings.
The Result: The transformation was dramatic. The new Trane S9V2 gas furnace delivers 96% AFUE efficiency, ensuring lower energy bills and reliable heating all winter. The XV18 heat pump provides heating during mild weather with the gas furnace kicking in to help when temperatures drop. A cooling efficiency of 18 SEER2 and variable speed compressor were major upgrades to summertime comfort and efficiency.
The upgrades also brought major savings. Before rebates, the full system replacement was priced at $23,732. Thanks to $3,199 in Watkins discounts, plus a $2,000 federal tax credit for the high-efficiency heat pump and furnace, the final cost came down to $18,533. The homeowners also took advantage of 0% financing, making the investment manageable with monthly payments under $285.
Weeks later, the family reported that their home was more comfortable than ever. The air felt cleaner, humidity was perfect, and the system’s quiet operation was a noticeable improvement. The efficient furnace and heat pump combo was set up to provide comfort and peace of mind for years to come.